5 Questions to Ask About Disability Finance

Confused about disability finance? Worried about disability lawyers? Try our mini-guide to disability finance, to help clear things up.

1. Am I eligible for benefits?

It’s straightforward to figure out if you’re eligible for any support from Social Security, and if so, which kinds. You can also ring their hotlines for advice, or get impartial advice in your community, for example, at a legal clinic. A good lawyer or disability attorney can also advise you on disability benefits.

2. What about insurance?

Disability insurance is an essential component of financial planning, especially if your income depends on your ability to work. It operates like other insurance policies, such as health, dental, or auto insurance, and provides financial protection if you become unable to work due to a disability.

Many employers offer disability insurance as part of their benefits package. If your employer doesn’t provide it, or if you’re self-employed, you can purchase a private policy. Disability insurance is available in two main forms: short-term and long-term.

• Short-term disability insurance provides coverage for temporary conditions, such as recovery from surgery or a serious illness.
• Long-term disability insurance supports individuals with conditions that prevent them from working for extended periods, sometimes even permanently.

For those with specialized careers, such as professional athletes or performers, elite disability insurance packages are available. These policies cater to individuals whose income relies heavily on their physical abilities.

3. What will disability insurance do for me?

Usually, you’ll get a percentage of your monthly income paid out to you by the insurance company. Most companies offer this monthly. You may also get rehabilitation services and possibly return-to-work incentives (which may be financial). If you’d like rehabilitation or other aspects of your disability insurance, make sure this is included in your policy before you agree to anything. If in doubt, ask an attorney to look over your policy for you before you’ve committed to it.

4. What kinds of disability insurance are there?

There are several types of disability insurance, each with unique features and eligibility requirements. Understanding these options can help you choose the right coverage for your situation:

• Social Security Disability Insurance (SSDI): Administered by the federal government, SSDI provides benefits to individuals who have paid into the Social Security system through payroll taxes. Eligibility depends on your work credits and the severity of your disability.
• State Disability Insurance: In some states, employers are required to provide disability insurance to their employees. These state-mandated programs vary in terms of coverage and eligibility, so it’s essential to research the specific requirements in your state.
• Private Disability Insurance: This option allows you to purchase a policy directly from an insurance company. Private policies are often more flexible than government programs and can be tailored to your needs. However, they typically require monthly premium payments.

Each type of insurance has its advantages and limitations. If you’re unsure which option is best for you, consult a financial advisor or disability lawyer for guidance.

5. What about disability lawyers?

Most disability lawyers work on things like denied claims, especially disability insurance claims. Disability law requires a specialized disability lawyer due to the continually changing laws around disability. A personal injury lawyer is a very different type of lawyer and will not have the right skills. Be wary of hiring the wrong type by accident. If the lawyer you’re hiring exclusively deals with disability insurance cases, they will be experts in navigating that field, and you’re sure to be in the best hands.

The world of disability finance is ever-changing and can be very confusing. Make sure to get all the advice you need from reputable sources before entering into any legal agreements or financial commitments. 

Originally posted 2020-04-14 11:51:08.